These FTSE 100 shares proved to be large disappointments for me final yr. However I’m optimistic they might show glorious holdings in my Shares and Shares ISA over time.

Right here’s why I feel their share costs could possibly be set to bounce again imminently and why they’re value contemplating now.

Barratt Redrow

2024 proved to be one other bumpy yr for housebuilders’ shares. The Barratt Redrow (LSE:BTRW) share price, for example, dropped 21% over the yr.

Traders had been spooked by indicators of extra cussed inflation within the UK. If this persists, the Financial institution of England could water down plans for rate of interest cuts, impacting purchaser affordability within the course of.

That mentioned, ongoing energy within the UK houses market leads me to suppose the market could also be too bearish on the builder. Newest information from Nationwide confirmed common home costs rose for a fourth successive month in December. Final month’s annual improve, at 4.7%, was additionally the most effective studying for 2 years.

Deliberate Stamp Responsibility modifications in March could also be contributing to sturdy demand proper now. However different components like competitors amongst mortgage suppliers, bettering purchaser confidence, and speedy inhabitants development are supporting gross sales, may underpin additional sturdy buying and selling at Barratt Redrow and assist its share price rebound.

Newest financials confirmed the corporate’s weekly non-public reservation charge per outlet stood at 0.67 between 22 August to 13 October. That was up virtually a 3rd from the corresponding 2023 interval.

Metropolis analysts are optimistic that Barratt Redrow’s share price will bounce again this yr. The 17 brokers with rankings on the inventory have assigned a 12-month price goal of 572.8p per share to the housebuilder.

That displays a 30%+ premium from present ranges of 439p.

Diageo

Drinks large Diageo‘s (LSE:DGE) been a sufferer of poor gross sales extra just lately, and particularly in Latin America and the Caribbean. This contributed to an 10% share price drop in 2024.

The Guinness and Johnnie Walker producer isn’t the one drinks producer struggling as customers tighten their belts. It’s a development which may proceed too if cussed inflation persists, limiting the potential for swingeing central financial institution charge cuts.

But Metropolis brokers are quietly assured that Diageo shares will get well floor in 2025. Twenty two analysts presently have rankings on Diageo shares they usually’ve slapped a 12-month price tag of £27.25 on the Footsie agency. This represents a 7% premium from present ranges of £25.48.

I’m optimistic too that Diageo may take pleasure in a a lot better yr in 2025. As I kind, world rates of interest are tipped to proceed dropping which ought to stimulate drinks-related spending. A primary-class model portfolio that features the likes of Guinness and Johnnie Walker places the corporate on a sound footing to use a market restoration too.

Diageo’s income (and by extension share price) are additionally anticipated to learn from current shake-ups to its route-to-market channels within the US, heavy restructuring in Nigeria, and its regular gravitation to fast-growing segments like premium and non-alcoholic drinks.

Right this moment, the FTSE enterprise trades on an traditionally low price-to-earnings (P/E) ratio of 18.5 instances. This gives extra scope for a share price rebound this yr.